Interim Report January-March 2000
INTERIM REPORT January-March 2000 * SALES ADVANCED 5.5%, ADJUSTING FOR DIVIESTED BUSINESSES, TO MSEK 12,857. * CAPITAL GAINS LIFTED OPERATING INCOME TO MSEK 3,382. * MOBILE SERVICES CONTINUED GROWING APACE AS REVENUES ROSE 25%. * THE CARRIER PRESELECT REFORM AND PRESSURE ON PRICES REDUCED SALES IN THE FIXED TELEPHONY BUSINESS IN SWEDEN. * BARTERED CAPACITY GAVE ACCESS TO FIBER-OPTIC NETWORKS IN NORTH AMERICA. CEO's Comments Our areas of growth continued to report strong advances. The mobile busi- ness significantly boosted sales and earnings. Demand for Internet and broadband access is increasing rapidly. The international carrier business lifted sales in IP-based traffic in Europe and other segments. The strategic investments that Telia is making in the Internet, broadband, and carrier field are aimed at supporting the Company's market position and growth in the long run. In the short run, these investments will have a negative impact on operating income. Weaker sales for fixed telephony in Sweden should be viewed in light of the preselect reform and tariff rebalancing carried out. Telia continues to concentrate its operations. During the period, a deci- sion was made to sell the Swedish cable-TV business, float the shares in the directory business, and sell the Group's shareholding in Eircom. Stockholm, May 8, 2000 Jan-Åke Kark President and CEO Sales The Telia Group's net sales for the first quarter totaled MSEK 12,857, up 3.7% from the same period the preceding year. Adjusting for divested busi- nesses, the increase was 5.5%. The level of prices for the Group's serv- ices and products declined 6%, which means that sales volume rose 12%. Mobile services in the Swedish market were the main contributors to reve- nue growth. Greater traffic volumes in the mobile networks and a steady stream of new customers helped the Mobile business area lift external net sales 25%. The international carrier business increased its sales of telephony traf- fic and IP-based traffic to other operators and service providers in the European market. Sales by the international carrier business surged 49%. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/08/20000508BIT00320/bit0001.doc The full report http://www.bit.se/bitonline/2000/05/08/20000508BIT00320/bit0002.pdf The full report